DUESSELDORF, Germany (Reuters) - German pump maker Busch is promising to hold off changes to rival Pfeiffer Vacuum’s (PV.DE) strategy and to safeguard jobs, as it seeks to drum up support for its latest takeover offer, according to a letter seen by Reuters on Monday.
Busch last week announced a new takeover offer for Pfeiffer, bidding 110 euros per share for the group, after a previous approach failed.
Busch said in the business combination letter it sent to Pfeiffer management that it “has full confidence in the strategy communicated by the company’s management.”
Its takeover vehicle Pangea “commits to allowing the group to continue operating as an independent, stock-listed company”, Busch said, adding the guarantees would be in place for two years.
It also said it would respect existing labor agreements following any takeover and not push for job cuts.
In return, it said it expected Pfeiffer’s management and supervisory boards to take a positive stance on the takeover offer.
Pfeiffer has criticized Busch for still not offering a premium over the current share price. The new offer values it at around 1.1 billion euros ($1.17 billion), less than its market value of close to 1.2 billion.
Reporting by Anneli Palmen; Writing by Maria Sheahan; Editing by Victoria Bryan